$ETN said the $CMI joint venture will strategically advance its transmission business going forward, and expects the transaction to close in 3Q17. $ETN and $CMI formed a JV for automated transmissions for heavy-duty and medium-duty commercial vehicles. The JV will be named Eaton Cummins Automated Transmission Technologies.

$ETN said the recovery in Hydraulics segment during 1Q17 was broad based, led by mobile and construction. The biggest strength inside of Hydraulics came from China market and seeing order strength from both OEMs and distribution channels, added the company. Hydraulics segment sales grew 7% YoY and orders grew 22% during the quarter.

On the Eaton joint venture, $CMI commented that it is convinced that leading powertrains will be integrated. The company believes that it is getting a leading technology which it can implement and $ETN and $CMI share their cultural values. With this JV, $CMI sees opportunities for growth internationally.

$ETN lifted 2017 earnings guidance by $0.15 per share, an increase of 3% to the prior midpoint of its estimate. For the whole of 2017, $ETN now sees EPS and operating EPS of $4.45-4.75, representing a 9% growth at midpoint of forecast over 2016. $ETN sees EPS and operating EPS for 2Q17 of $1.05-1.15.

$ETN reported a rise in 1Q17 earnings driven by 2% organic sales growth as well as higher sales. Net income rose to $432MM or $0.96 per share from $404MM or $0.88 per share last year. Sales grew to $4.85Bil from $4.81Bil.

$ETN and $CMI agreed to form a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. $CMI will consolidate JV results as part of its Components business segment. $ETN will receive $600MM in cash from $CMI for 50% interest in the JV.

$ETN and $CMI agreed to form a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. The JV will be named Eaton Cummins Automated Transmission Technologies. $CMI and $ETN will each own 50% of the new JV. The parties expect the transaction to close in 3Q17.

Power management company $ETN has named João Faria as the president of its Vehicle Group, effective May 1. He succeeds Kenneth Davis, who will retire on August 1. Faria will report to Uday Yadav, COO, Industrial Sector.

$ETN said it has moved some of its restructuring actions planned for 2017 into 4Q16 due to the unplanned income from insurance matters of approx. $70MM. This action took the restructuring cost to $90MM for the quarter, up about $24MM from the original forecast.

For 2017, $ETN expects net income and operating earnings per share to be $4.30-4.60. This outlook is based on flat organic revenue and negative currency translation of $300MM. For 1Q17, $ETN anticipates net income and operating earnings per share to be $0.80-0.90.

$ETN reported a 5% drop in 4Q16 profit, hurt by lower sales. Net income was $504MM or $1.12 per share compared to $532MM or $1.15 per share in the prior year quarter. Sales dropped 4% to $4.9Bil in the recently ended quarter, hurt by the higher negative currency translation.

$ETN appointed Heath Monesmith as EVP and general counsel effective March 1, 2017. He will succeed Mark McGuire who will retire at that time. Monesmith will report to Craig Arnold, Eaton chairman and CEO. Monesmith will also serve as counsel to the BoD and advise the Board on legal and governance matters.

$ETN is expanding its restructuring program by $50MM in 2017 to $180MM total. For 2017, the company's pension plan discount rate will likely be lower by 25-40 BPs. The company is likely to see slightly higher interest expense in 2017, which is due to the floating rate debt.

For 4Q16, $ETN expects revenues to be down 1.5 points from 3Q16. Margins are expected to be between 15.4-15.8%, driven largely by lower volumes and unfavorable mix, growth in lighting and some weakness in industrial controls and large industrial projects, and continued weakness in oil and gas.

$ETN's cash flow was $798MM in 3Q16. Cash conversion ratio in the quarter was 130%, driven by strong margins and the benefits of amortization. Year-to-date, the company's cash conversion ratio was 110%. $ETN has repurchased 3.7MM shares for $243MM in 3Q16, which brings full year 2016 repurchases to 9.2MM shares or $560MM versus target of $700MM.